[Senate Report 116-313]
[From the U.S. Government Publishing Office]
Calendar No. 616
116th Congress} { Report
SENATE
2d Session } { 116-313
======================================================================
STOP WASTEFUL SPENDING BY THE GOVERNMENT ACT
__________
R E P O R T
of the
COMMITTEE ON HOMELAND SECURITY AND
GOVERNMENTAL AFFAIRS
UNITED STATES SENATE
to accompany
S. 2722
TO PROHIBIT AGENCIES FROM USING FEDERAL FUNDS FOR PUBLICITY OR
PROPAGANDA PURPOSES, AND FOR OTHER PURPOSES
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
December 14, 2020.--Ordered to be printed
__________
U.S. GOVERNMENT PUBLISHING OFFICE
WASHINGTON : 2020
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COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS
RON JOHNSON, Wisconsin, Chairman
ROB PORTMAN, Ohio GARY C. PETERS, Michigan
RAND PAUL, Kentucky THOMAS R. CARPER, Delaware
JAMES LANKFORD, Oklahoma MAGGIE HASSAN, New Hampshire
MITT ROMNEY, Utah KAMALA D. HARRIS, California
RICK SCOTT, Florida KYRSTEN SINEMA, Arizona
MICHAEL B. ENZI, Wyoming JACKY ROSEN, Nevada
JOSH HAWLEY, Missouri
Gabrielle D'Adamo Singer, Staff Director
Joseph C. Folio III, Chief Counsel
William W. Sacripanti, Professional Staff Member
David M. Weinberg, Minority Staff Director
Zachary I. Schram, Minority Chief Counsel
Annika W. Christensen, Minority Professional Staff Member
Laura W. Kilbride, Chief Clerk
Calendar No. 616
116th Congress} { Report
SENATE
2d Session } { 116-313
======================================================================
STOP WASTEFUL SPENDING BY THE GOVERNMENT ACT
_______
December 14, 2020.--Ordered to be printed
_______
Mr. Johnson, from the Committee on Homeland Security and Governmental
Affairs, submitted the following
R E P O R T
[To accompany S. 2722]
[Including cost estimate of the Congressional Budget Office]
The Committee on Homeland Security and Governmental
Affairs, to which was referred the bill (S. 2722) to prohibit
agencies from using Federal funds for publicity or propaganda
purposes, and for other purposes, having considered the same,
reports favorably thereon with an amendment (in the nature of a
substitute) and recommends that the bill, as amended, do pass.
CONTENTS
Page
I. Purpose and Summary..............................................1
II. Background and the Need for Legislation..........................2
III. Legislative History..............................................3
IV. Section-by-Section Analysis......................................3
V. Evaluation of Regulatory Impact..................................3
VI. Congressional Budget Office Cost Estimate........................4
VII. Changes in Existing Law Made by the Bill, as Reported............5
I. PURPOSE AND SUMMARY
The purpose of S. 2722, the Stop Wasteful Advertising by
the Government Act (or the SWAG Act), is to prohibit agencies
from using Federal funds for creating mascots or distributing
tchotchkes commonly referred to as ``swag.'' Exceptions from
these prohibitions include challenge coins, military medals,
mascots specifically mentioned in legislation (such as Smokey
the Bear) or used by the military (such as Chesty Puller, the
U.S. Marine Corps bulldog), swag used for recruiting job hires,
and items distributed for the 2020 Census.
II. BACKGROUND AND THE NEED FOR LEGISLATION
The Federal Government spends over $1.4 billion annually on
public relations campaigns and advertising.\1\ Investigations
have revealed instances in which federal agencies spent amounts
of these funds on frivolous promotional items, including
$605,000 on coloring books,\2\ $60,000 on key chains\3\,
$33,000 on snuggies (blankets with sleeves),\4\ $17,000 on
koozies\5\ and $16,000 on fidget spinners.\6\ In Fiscal Year
2018 and 2019, federal agencies spent approximately $250,000 on
custom suits for mascots. Such spending is of indeterminate
effectiveness at best and possibly represents a fruitless
expenditure of taxpayer funds.\7\
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\1\Total Cost tabulated by adding the annual advertising
expenditure as reported by GAO and the salaries of Federal workers in
public relations jobs as reported by GAO. See U.S. Gov't Accountability
Off., GAO-16-877R, Reported Data on Related Federal Activities (2016).
\2\See generally, USA Spending, http://www.usaspending.gov (last
visited Mar. 25, 2020).
\3\Id.
\4\Arlington Virginia Dept. of Community Planning, Housing, &
Development, Planning Division, Census Staff Report (2010), https://
projects.arlingtonva.us/wp-content/uploads/sites/31/2017/04/Census-
Staff-Report_2010.pdf.
\5\See generally USA Spending, https://www.usaspending.gov/#/
keyword_search/koozie (last visited Mar. 25, 2020).
\6\See generally, USA Spending, https://www.usaspending.gov/#/
award/37848623 (last visited Mar. 25, 2020), and USA Spending, https://
www.usaspending.gov/#/award/65454710 (last visited Mar. 25, 2020).
\7\Staff Report of U.S. Sen. Joni Ernst, 116th Cong., `Boo!' To the
Cost of the Capitol's Costumes, https://www.ernst.senate.gov/public/
_cache/files/6cadf7c5-14d2-40e7-9f19-bdd9d077735e/
5247EE3E066F4059C595CFA3E55DD71D.2019-10-29-october-squeal-mascot-
list-.pdf (last visited on March 25th, 2020).
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Federal agencies also spent money on conducting
questionable advertising campaigns. For example, the State
Department spent $630,000 on two advertising campaigns in order
to increase the number of ``fans''' of certain department-run
Facebook pages targeting foreign audiences.\8\ As a result, the
State Department Facebook pages in question rose from around
100,000 fans to more than 2 million for each page.\9\ While
this is a positive increase, there is little data on how
effective this form of advertising is, and many within the
Department criticized the move as ``buying fans''' and touting
metrics that do not indicate any greater involvement or
investment in the mission of the State Department.\10\
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\8\U.S. Dept. of State, Off. of Inspector General, ISP-I-13-28,
Inspection of the Bureau of International Information Programs (2013).
\9\Id.
\10\Id.
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Additionally, there is limited transparency surrounding
this type of spending. There is no central reporting mechanism
by which congressional appropriators, inspectors general, and
the public, can easily determine what is being spent on
advertising and public relations including returns on
investment and benefits to the taxpayer. Requiring agencies to
disclose non-prohibited advertising spending could increase
government transparency and oversight.
The SWAG act addresses these concerns by prohibiting
agencies and other government entities from spending federal
funds to acquire or distribute ``swag,'' or products
distributed at no cost, if the products do not support the
agency's mission and do not have a positive return in achieving
agency or program goals. The bill also requires each agency, as
part of its annual budget justification, to report on its
public relations and advertising spending for the preceding
fiscal year, which may include an estimate of the return on
investment for the agency.
III. LEGISLATIVE HISTORY
Senator Joni Ernst introduced the Stop Wasteful Advertising
by the Government Act on October 29, 2019, with Senators Rand
Paul, Steve Daines, and Rick Scott. The bill was referred to
the Senate Committee on Homeland Security and Governmental
Affairs. The Committee considered S. 2722 at a business meeting
on March 11, 2020.
At the business meeting, Senator Johnson offered an
amendment that took agency input into account, clarified
spending prohibitions and exempted forms of spending, and made
minor definitional clarifications and changes. The amendment
also tasks the Office of Management and Budget (OMB) with
issuing regulations on implementation of the bill within 180
days of its enactment. The amendment was adopted en bloc by
voice vote with Senators Johnson, Portman, Lankford, Romney,
Scott, Enzi, Hawley, Peters, Carper, Hassan, Harris, Sinema,
and Rosen present.
S. 2722, as amended, was approved en bloc by voice vote
with Senators Johnson, Portman, Lankford, Romney, Scott, Enzi,
Hawley, Peters, Carper, Hassan, Harris, Sinema, and Rosen
present.
IV. SECTION-BY-SECTION ANALYSIS OF THE BILL, AS REPORTED
Section 1. Short title
This section establishes the short title of the bill as the
``Stop Wasteful Advertising by the Government Act of 2020'' or
the ``SWAG Act.''
Section 2. Definitions
This section defines the terms ``advertising,'' ``agency,''
``mascot,'' ``public relations,'' ``return on investment,'' and
``swag.'' Also defined are certain exemptions such as military
medals and challenge coins.
Section 3. Prohibitions; public relations and advertising spending
This section prohibits an agency or other federal
entityfrom using federal funds to purchase or otherwise acquire
or distribute swag, or manufacture and use a mascot. This
section also mandates that each agency shall submit to Congress
a report on its spending on public relations and advertising
spending as part of its annual budget justification.
Additionally, this section lays out a series of exceptions to
the prohibition, which include spending that supports the
mission or objectives of the agency while generating a positive
return on investment, supports recruitment for the armed forces
or federal government, or supports conducting the census.
Lastly, this section gives OMB 180 days from enactment to issue
regulations to carry out the Act.
V. EVALUATION OF REGULATORY IMPACT
Pursuant to the requirements of paragraph 11(b) of rule
XXVI of the Standing Rules of the Senate, the Committee has
considered the regulatory impact of this bill and determined
that the bill will have no regulatory impact within the meaning
of the rules. The Committee agrees with the Congressional
Budget Office's statement that the bill contains no
intergovernmental or private-sector mandates as defined in the
Unfunded Mandates Reform Act (UMRA) and would impose no costs
on state, local, or tribal governments.
VI. CONGRESSIONAL BUDGET OFFICE COST ESTIMATE
U.S. Congress,
Congressional Budget Office,
Washington, DC, December 8, 2020.
Hon. Ron Johnson,
Chairman, Committee on Homeland Security and Governmental Affairs, U.S.
Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 2722, the SWAG Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Sofia Guo.
Sincerely,
Phillip L. Swagel,
Director.
Enclosure.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
S. 2722 would prohibit federal agencies from using federal
funds to purchase, acquire or distribute swag, which the bill
defines as tangible products or merchandise distributed at no
cost with the sole purpose of advertising or promoting an
agency, organization, or program. The bill would allow certain
exceptions, including items that generate a positive return on
investment to agencies or that are used for recruitment, and
mascots related to the Armed Forces. Under S. 2722, each agency
would be required to report on its spending for public
relations and advertising for the previous fiscal year, and the
Office of Management and Budget would be required to issue
implementing regulations.
CBO estimates that implementing the bill would have an
insignificant net effect on spending subject to appropriation.
Based on the cost of similar administrative activities, CBO
expects that the new administrative and reporting requirements
would cost less than $500,000. Because of the exceptions in the
bill, CBO expects that any reduction in spending on swag and
mascots would not be significant.
Enacting S. 2722 could affect direct spending by some
agencies that are allowed to use fees, receipts from the sale
of goods, and other collections to cover operating costs. CBO
estimates that any net changes in direct spending by those
agencies would be negligible because most of them can adjust
amounts collected to reflect changes in operating costs.
The CBO staff contact for this estimate is Sofia Guo. The
estimate was reviewed by H. Samuel Papenfuss, Deputy Director
of Budget Analysis.
VII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
Because this legislation would not repeal or amend any
provision of current law, it would not make changes in existing
law within the meaning of clauses (a) and (b) of paragraph 12
of rule XXVI of the Standing Rules of the Senate.
[all]